Banks & Credit Cards - Default Notice
A Default Notice is simply a record placed on your file by creditors stating that you have been in default in some way. Such notices may have been placed without your knowledge and despite a subsequent remedy to the default.
Under the terms of your credit agreement you will probably have agreed that the lender has the right to inform the credit agencies of any default.
If you need to check your credit files check out Repair Your Credit History for the major credit reference agencies.
The Default Notice must have the following information
Name and addresses of both the creditor and the borrower.
Agreement type and the agreement breach details.
Settlement figure (Fixed sums only).
The action required by the borrower to remedy the situation and comply with the agreement.
Intended action of the creditor should the borrower fail to comply with the agreement.
The borrower has 7 days from the issue of the Default Notice to comply, before which a creditor cannot take the borrower to court. If the borrower does not comply, it does not mean that a creditor will take the borrower to court. Often, communication by the borrower with the creditor to find a mutually acceptable repayment amount will avoid further action being levied on the borrower. However, borrowers with serious debt problems, may find that this is unworkable, as different creditors to which money is owed all ask for unrealistic amounts. In a situation like this, the borrower should seek professional free debt advice to enable them to negotiate with their creditors and establish a realistic and regular repayment plan.
An example of a Defaul Notice:
